DHL Supply Chain launches direct-to-consumer solution
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DHL Supply Chain has partnered with digital commerce agency Tryzens, to offer brands a rapid-start, scalable and cost-effective direct-to-consumer (D2C) route to market.
The solution, named ConsumerDirect, was created to simplify access to digital and supply chain capabilities. It is intended to make entry into D2C simple and low risk for established brands that are currently selling through wholesale or retail channels. From consultation and initial setup, through to navigating the hurdles of acquiring a direct customer base, the partners will launch digital storefronts and reconfigure the supply chain to help brands launch D2C solutions that can scale with them as they grow. In addition, Tryzens and DHL will support the growing demand for capabilities such as subscriptions, personalization of products and packaging and sustainable solutions.
The solution is intended to enable brands to operate a D2C solution through DHL’s infrastructure and range of services, alongside its wholesale B2B supply chain. With low entry costs and a pay-as-you-grow mechanism, the solution is expected to diminish the pain of investment risk, especially while the D2C channel is being established.
“With low entry costs and a pay-as-you-grow mechanism, the solution is expected to diminish the pain of investment risk, especially while the D2C channel is being established.”
Since 2018, the companies have observed an increasing number of consumer and retail brands establishing direct e-commerce channels to reach their customers, ensure supply, increase customer loyalty, understand consumer behavior and improve margins. The ConsumerDirect proposition from DHL and Tryzens enables brands to reach their customers across the world with a high-quality end-to-end experience, without great commercial risk or investment.
Alex Hislop, chief customer officer of DHL Supply Chain UK and Ireland, said, “We are delighted to be partnering with Tryzens, who bring further strength to our one-stop-shop, local and global fulfillment solution. In the market, there is often a misconception that for established consumer goods brands the transition to selling direct is simple, but compared with pureplay online retail, it can be a real challenge to reconfigure supply chains to improve agility and flexibility, build brand loyalty and deeper customer relationships, and maintain important wholesale and retail channel relationships. That’s why we’ve established our partnership with Tryzens; both businesses understand that complexity and bring complementary expertise to guide brands on the entire digital and physical journey.”
Andy Burton, CEO of Tryzens, said, “The ability for brands to directly engage with consumers not only provides an additional means of selling their products but enables real insight to be gleaned and customer loyalty maintained. D2C provides a channel for building brand reputation and controlling the narrative in differentiating a brand’s products from others in the mind of the consumer. The consumer promise is made up of online shopping, the real-world fulfillment experience and the product quality experience, so we at Tryzens are truly proud to be working with DHL as global leaders in supply chain management to offer the market a comprehensive and cost-effective solution for brands to launch swiftly and scale their D2C capability with the full assurance that the promise they provide to market can be fulfilled.”
Questions & Answers
Q.What specific services will the ConsumerDirect solution offer to brands looking to enter the direct-to-consumer market?
What specific services will the ConsumerDirect solution offer to brands looking to enter the direct-to-consumer market?
The solution will launch digital storefronts and reconfigure supply chains, helping brands with consultation, setup, and navigating customer acquisition. It also supports subscriptions, product and packaging personalisation, and sustainable solutions.
Q.How does this new solution aim to reduce financial risk for brands transitioning to a direct-to-consumer model?
How does this new solution aim to reduce financial risk for brands transitioning to a direct-to-consumer model?
The solution offers low entry costs and a 'pay-as-you-grow' mechanism. This approach is expected to diminish the pain of investment risk, particularly during the initial establishment phase of the direct-to-consumer channel.
Q.What is the primary misconception about direct-to-consumer transitions for established brands that this partnership aims to address?
What is the primary misconception about direct-to-consumer transitions for established brands that this partnership aims to address?
Alex Hislop notes a misconception that the transition is simple for established brands. Compared to pureplay online retail, reconfiguring supply chains, building loyalty, and maintaining wholesale relationships can be challenging.
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